According to Teresa Mastrangelo (picture), Directing Analyst, Cable, Satellite, and IPTV Video - "In the fourth quarter of 2010, we witnessed the dramatic growth of over-the-top services, as service providers and equipment vendors hit the ‘sweet spot’ for pricing. However, these services continue to complement pay TV rather than replace it .. We also are seeing increasing demand for hybrid set-top boxes, which leverage the existing broadcast infrastructure, but utilize the broadband connection to incorporate OTT content and increase interactivity and on-demand services".
More OTT related findings:
- Netflix added more than 3 million subscribers in 4Q10—nearly twice as many as in the previous quarter, and 3 times as many as during the same period in 2009—now supporting a subscriber base that exceeds 20 million
- Hulu introduced its paid service, Hulu Plus, last year at a similar price point; its subscriber base is expected to exceed 1 million in 2011
- Amazon UK’s purchase of LOVEFiLM will likely drive increasing OTT media server demand in Europe